A Russian court ordered the seizure of $439.5 million in funds from JPMorgan Chase’s bank accounts in Russia that the largest American lender froze after the Ukraine invasion, according to a court filing.
The court’s ruling Wednesday comes after state-owned VTB Bank filed a lawsuit in a St. Petersburg arbitration court after the Russian bank was hit with sanctions following the invasion.
JPMorgan declined to comment on the Russian court’s interim measures.
VTB did not immediately comment on Wednesday. It has previously declined to comment on its legal disputes with JPMorgan Chase.
The Russian court ordered the seizure of all funds in JPMorgan’s Russian accounts as well as movable and immovable property,” including the banks stake in a Russian subsidiary, according to a court order published by the Arbitration Court of St Petersburg and the Leningrad Region.
The ruling noted that the court had not taken securities and property held by JPMorgan, or the jpmorgan.ru domain.
The next hearing in the Russian case is July 17.
JPMorgan tried to block VTB’s efforts by filing its own suit in New York last week.
In a complaint filed in federal court in Manhattan, JPMorgan described VTB’s attempt to recover the money in Russia as a “blatant breach” of its agreement to have disputes addressed in New York.
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JPMorgan noted in its filing that US law prohibits it from releasing the $439.5 million, and VTB, Russia’s second-largest bank, will try to seize its assets abroad if it prevails in the Russia lawsuit.
It said VTB’s prospects there were good, with Russian courts having granted at least six other Russian banks relief against US and European banks that were required to comply with sanctions laws.
“Thus, JPMorgan is immediately facing a certain Russian judgment exposing its assets to seizure, without timely or assured recourse, simply because it is abiding, as it must, with US law,” JPMorgan’s lawyers said at the time.
The Russian court’s ruling came just after President Joe Biden signed a foreign aid bill into law, giving US officials new powers to locate and seize Russian assets in the US, as well as obtain Russian state assets from European allies to use as aid for Ukraine.
Biden’s administration has said that it already has a $1 billion military aid package for Ukraine in the works — the first sourced from the bill, two US officials told Reuters.
It includes vehicles, Stinger air defense munitions, additional ammunition for high-mobility artillery rocket systems, 155 millimeter artillery ammunition, TOW and Javelin anti-tank munitions and other weapons that can immediately be put to use on the battlefield, the officials said, speaking on condition of anonymity.
However, the bill must first jump its last hurdle — final approval in the Senate — before the Biden administration will send any additional aid, though its nearly guaranteed to pass.
Biden has asked for Congress to pass a much larger, $60.8 billion in aid to Ukraine, but the initiative stalled when Republicans in the House of Representatives refused to move the measure forward for months.
In response to the expected renewed US aid, Russian Defense Minister Sergei Shoigu on Tuesday said Moscow would increase the intensity of attacks on logistics centers and storage bases for Western weapons in Ukraine, according to the ministrys Telegram channel.
Noting the desperate situation, Ryder said the Pentagon would do everything we can to lean forward, employ [our] robust logistics network capability, employ the relationships that weve built with our international allies and partners to get a [package] there quickly.
Needless to say we understand the importance and the urgency and are doing everything we can to be poised to respond quickly, he added.
Nigel Farage has successfully exploited the Commons recess to “grab the mic” and “dominate” the agenda, Harriet Harman has said.
Speaking on Sky News’ Electoral Dysfunction podcast, the Labour peer said that the Reform UK leader has been able to “get his voice heard” while government was not in “full swing”.
Mr Farage used a speech this week to set himself, rather than Kemi Badenoch’s Tories, up as the main opposition to Sir Keir Starmer at the next election.
Baroness Harman said: “It’s slightly different between opposition and government because in government, the ministers have to be there the whole time.
“They’ve got to be putting legislation through and they kind of hold the mic.
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“They can dominate the news media with the announcements they’re making and with the bills they’re introducing, and it’s quite hard for the opposition to get a hearing whilst the government is in full swing.
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“What we used to do when we were in opposition before 1997 is that as soon as there was a bank holiday and the House was not sitting, as soon as the half-term or the summer recess, we would be on an absolute war footing and dominate the airwaves because that was our opportunity.
“And I think that’s a bit of what Farage has done this week,” Harman added.
“Basically, Farage can dominate the media agenda.”
She went on: “He’s kind of stepped forward, and he’s using this moment of the House not sitting in order to actually get his voice heard.
“It’s sensible for the opposition to take the opportunity of when the House is not sitting to kind of grab the mic and that is what Nigel Farage has done.”
But Baroness Harman said it “doesn’t seem to be what Kemi Badenoch’s doing”.
She explained that the embattled leader “doesn’t seem to be grabbing the mic like Nigel Farage has” during recess, and added that “there’s greater opportunity for the opposition”.
The UK will buy up to 7,000 long-range missiles, rockets and drones and build at least six weapons factories in a £6bn push to rearm at a time of growing threats.
The plan, announced by the government over the weekend, will form part of Sir Keir Starmer’s long-awaited Strategic Defence Review, which will be published on Monday.
However, it lacks key details, including when the first arms plant will be built, when the first missile will be made, or even what kind of missiles, drones and rockets will be purchased.
The government is yet to appoint a new senior leader to take on the job of “national armaments director”, who will oversee the whole effort.
Andy Start, the incumbent head of Defence Equipment and Support – the branch of defence charged with buying kit – is still doing the beefed-up role of national armaments director as a sluggish process to recruit someone externally rumbles on.
Image: Sir Keir Starmer and Volodymyr Zelenskyy at a presentation of Ukrainian military drones. Pic: Reuters
Revealing some of its content ahead of time, the Ministry of Defence said the defence review will recommend an “always on” production capacity for munitions, drawing on lessons learned from Ukraine, which has demonstrated the vital importance of large production lines.
It will also call for an increase in stockpiles of munitions – something that is vitally needed for the army, Royal Navy and Royal Air Force to be able to keep fighting beyond a few days.
Some £1.5bn will be invested in the new factories, the government said. It said this additional funding will lift total expenditure on munitions to £6bn this parliament.
“The hard-fought lessons from [Vladimir] Putin’s illegal invasion of Ukraine show a military is only as strong as the industry that stands behind them,” John Healey, the defence secretary, said in a statement released on Saturday night.
“We are strengthening the UK’s industrial base to better deter our adversaries and make the UK secure at home and strong abroad.”
Image: Army Commandos load a 105mm Howitzer in Norway. Pic: Ministry of Defence/PA
The UK used to have a far more resilient defence industry during the Cold War, with the capacity to manufacture missiles and other weapons and ammunition at speed and at scale.
However, much of that depth, which costs money to sustain, was lost following the collapse of the Soviet Union in 1991, when successive governments switched funding priorities away from defence and into areas such as health, welfare and economic growth.
Even after Russia’s full-scale invasion of Ukraine in 2022 and a huge increase in demand from Kyiv for munitions from its allies, production lines at UK factories were slow to expand.
Image: A reaper drone in the Middle East. Pic: Ministry of Defence
Sky News visited a plant run by the defence company Thales in Belfast last year that makes N-LAW anti-tank missiles used in Ukraine. Its staff at the time only worked weekday shifts between 7am and 4pm.
Under this new initiative, the government said the UK will build at least six new “munitions and energetics” factories.
Energetic materials include explosives, propellants and pyrotechnics, which are required in the manufacturing of weapons.
There were no details, however, on whether these will be national factories or built in partnership with defence companies, or a timeline for this to happen.
There was also no information on where they would be located or what kind of weapons they would make.
Image: King Charles visits HMS Prince of Wales. Pic: PO Phot Rory Arnold/Ministry of Defence/PA
In addition, it was announced that the UK will buy “up to 7,000 UK-built long-range weapons for the UK Armed Forces”, though again without specifying what.
It is understood these weapons will include a mix of missiles, rockets and drones.
Sources within the defence industry criticised the lack of detail, which is so often the case with announcements by the Ministry of Defence.
The sources said small and medium-sized companies in particular are struggling to survive as they await clarity from the Ministry of Defence over a range of different contracts.
One source described a sense of “paralysis”.
The prime minister launched the defence review last July, almost a year ago. But there had been a sense of drift within the Ministry of Defence beforehand, in the run-up to last year’s general election.
The source said: “While the government’s intentions are laudable, the lack of detail in this announcement is indicative of how we treat defence in this country.
“Headline figures, unmatched by clear intent and delivery timelines which ultimately leave industry no closer to knowing what, or when, the MOD want their bombs and bullets.
“After nearly 18 months of decision and spending paralysis, what we need now is a clear demand signal from the Ministry of Defence that allows industry to start scaling production, not grand gestures with nothing to back it up.”
As well as rearming the nation, the government said the investment in new factories and weapons would create around 1,800 jobs across the UK.
Prison officers should be armed with lethal weapons to crack down on Islamist terrorists in jail, the shadow justice secretary has said.
Highly trained teams should also be equipped with tasers, stun grenades and baton rounds to tackle dangerous criminals in high-security jails, Robert Jenrick said.
The plan is taken from a series of recommendations by counter-extremism expert and former prison governor Ian Acheson.
It also follows several attacks on prison officers in jails.
In April this year, the Manchester Arena bomb plotter, Hashem Abedi, allegedly assaulted prison staff by throwing hot oil on them and then launching a stabbing attack, injuring three officers.
At Belmarsh prison, Southport killer Axel Rudakubana has been accused of throwing boiling water over an officer through the hatch in his cell door earlier this month.
Image: File pic: PA
Mr Jenrick said: “Islamist gangs and violent prisoners in our jails are out of control.
It’s a national security emergency, but the government is dithering. If they don’t act soon, there is a very real risk that a prison officer is kidnapped or murdered in the line of duty, or that a terrorist attack is directed from inside prison.”
He said he commissioned Mr Acheson to conduct a rapid review into measures the government could adopt.
The measures include removing all radical Islamist imams working in prisons, immediately rolling out high-collar stab vests to frontline officers, and mandating the quarterly release of data on religious conversions in prison and faith-based incidents.
It also recommended legislating to overturn the De Silva ruling to strip back judicial interference in operational decisions by governors to isolate extremists.
Mr Jenrick added: “We have to stop pussy-footing around Islamist extremists and violent offenders in jails.
“That means arming specialist prison officer teams with tasers and stun grenades, as well as giving them access to lethal weapons in exceptional circumstances.
“If prison governors can’t easily keep terrorist influencers and radicalising inmates apart from the mainstream prisoners they target, then we don’t control our prisons – they do. We must take back control and restore order by giving officers the powers and protection they need.”
Mr Acheson said: “Too often what goes wrong behind the walls of our high security jails passes unnoticed, as does the bravery of the men and women in uniform who deal every day with terrorists and other highly dangerous offenders.
“Robert Jenrick is right – the threat to officer safety is now intolerable and must be met decisively by the government.
“The balance inside too many of our prisons has shifted away from control by the state to mere containment and the price is soaring levels of staff assaults and wrecked rehabilitation. Broken officers can’t help fix broken people – or protect the public from violent extremism.”
A Ministry of Justice source said: “The government considers the introduction of lethal weapons into prisons would put prison officers at greater risk.”
They added: “The last government added just 500 cells to our prison estate, and left our jails in total crisis. In 14 years, they closed 1,600 cells in the high-security estate, staff assaults soared, and experienced officers left in droves. Now the arsonists are pretending to be firefighters.
“This government is cleaning up the mess the last government left behind. We are building new prisons, with 2,400 new cells opened since we took office. And we take a zero-tolerance approach to violence and extremism inside.”